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Italy and Brexit take centre stage.....>

BOND SUMMARY
BOND SUMMARY: Italy and Brexit take centre stage again today, while EGB supply
continues to pick up in earnest.
- It now appears that PM Boris Johnson will ask the Queen to prorogue parliament
in an effort to scupper attempts by MPs to prevent a no-deal Brexit. Suspending
the people's parliament is a high-risk strategy for the PM, which will intensify
calls for a no-confidence vote. Gilts are bid with yields 1-3bp lower on the
day.
- Headlines out this morning that Italy Pres Mattarella could give Conte a
mandate as soon as Wednesday, or another week to draw up policies/team.
- Italy / German 10-Yr spread 2.8bps wider at 186bps
- Plenty of supply today: 10-Yr Germany (E3bln), 3-Yr EFSF (E1bln), while 5-Yr
Finland syndication (E3bln) is underway.
- Little reaction from Eurozone M3 or downtick in Italy bus/consumer confidence.

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